What kind of support can the state organize for the agricultural sector in the conditions of ...?

Ukraine has a law according to which the state provides support to the agricultural sector under martial law.

Law of Ukraine No. 7178 "On ensuring food security under martial law" provides the following support to farmers:

• allows the use of all available agricultural land for the sowing campaign (simplifies the acquisition of rights of use for agricultural land plots under martial law). In addition, prerequisites have been created for conducting agricultural production on state-owned lands, which are currently in permanent use by state-owned enterprises of the Ministry of Agriculture, National Academy of Sciences of Ukraine, educational institutions, etc.;

• leased land relations are automatically extended for a year without entering information into the relevant registers;

• district military administrations can lease state and communal agricultural plots of land intended for agricultural production for a period of up to a year. The rent cannot exceed 8% of the normative monetary value of the plots. To calculate the amount of rent, the average NGO of arable land area in the region will be used. For such lands, a restriction is established regarding the change of purpose of plots. Lease contracts for such land are concluded only for one year in e-form without bidding. They cannot be renewed or renewed. The right to lease land leased by the military administration will not be subject to state registration;

• the transfer of agricultural land, which is in permanent use by state and communal enterprises, institutions, organizations and on which there are no crops, is carried out with the written consent of the head of the corresponding state, communal enterprise, institution, organization, and the right to permanent use of land plots is not terminated.

Law of Ukraine No. 2120-IX "On Amendments to the Tax Code of Ukraine and other legislative acts of Ukraine regarding the effect of norms for the period of martial law" was also adopted, which establishes:

1. temporarily, for the period from March 1, 2022 to December 31 of the year following the one in which the state of war or emergency is terminated or canceled, **no land fee is charged and paid ** (land tax and rent for plots of state and communal property) for plots of land (parts (parts) located in the territories where hostilities are being waged or in the territories temporarily occupied by the armed forces of the Russian Federation and are owned or used, including h. on the terms of lease, for individuals or legal entities, as well as for land plots (parts (parts) determined by regional military administrations as littered with explosive objects and/or on which there are fortification structures;

2. temporarily, for the 2022 and 2023 tax (reporting) years the general minimum tax liability is not calculated and paid for land plots located in the territories where hostilities are (were) taking place, or in the territories, temporarily occupied by the armed forces of the Russian Federation, and/or for areas identified by regional military administrations as littered with explosive objects and/or where there are fortifications.

There are also certain benefits for obtaining loans. The government supplemented the state program "Affordable loans 5-7-9%". Now, medium-sized enterprises with an annual income of up to 50 million euros and large enterprises with an annual income of more than 50 million euros, regardless of the number of employees, have access to:

1) the maximum loan amount for all business entities is UAH 60 million, taking into account groups of related companies;

2) interest rate — 0% per annum;

3) purpose of lending:

• investment loan for the purchase of agricultural machinery,

• credit for replenishment of working capital for the purchase of seeds, fertilizers and fuel and lubricants;

4) loan term — 6 months;

5) the deadline for submitting an application for participation in the program is May 31, 2022;

6) the amount of the credit guarantee — 80% of the amount of the loan of a micro, small and medium-sized business entity (except for large business entities).

Also, Order No. 154 of the Ministry of Agrarian Policy and Food of Ukraine "On technical support of the complex of field works in the conditions of martial law in 2022" allows the operation of agricultural machinery (tractors, self-propelled chassis, self-propelled agricultural machinery, road construction and reclamation machines , other agricultural machines and their components of domestic and foreign production) without registration.